Wednesday, July 16, 2008
The SEC charged the mayor of Beaufort, S.C., with insider trading on non-public information that he obtained while doing consulting work for a California biotechnology company. According to the Commission's complaint, Mayor William J. Rauch purchased stock in Advanced Cell Technology, Inc., immediately after one of its executives informed him about a breakthrough embryonic stem cell technique that the company was about to disclose publicly. Rauch was told the information was confidential, and he had previously signed an agreement with the company that barred him from using confidential company information for his own benefit. Rauch has agreed to settle the Commission's charges without admitting or denying the allegations and to pay $20,708 in disgorgement, $2,576 in prejudgment interest, and a $20,708 penalty.